After 10 years of marriage, I’m still enjoying living in the first home I moved into with my husband. Buying a first home can be one of the most exciting events in a person’s life. Before making this important expenditure, people need to first sit down and determine how they will successfully finance it. After all, a home will likely be the most expensive purchase you make in your life. Talk to a loan officer and determine how much money you can reasonably borrow. Then, decide how much money you want to use as a down payment. You also must decide how many years you will finance your home for. On this blog, you will learn about the process of buying a first home with a loan.
Buying a new home is stressful. You want to find the home of your dreams at a price you can afford. Even if you are being very reasonable about your expectations, you may have trouble finding something that is available. You cannot just walk up to someone's door and ask them to sell you their house because it is exactly what you want. Of course, you will have help searching from a real estate agent. However, many agents will only give you their full effort when you have been prequalified for a loan. So, you need to decide whether to work with a mortgage broker or find the loan on your own. Here are a few things to consider before making up your mind on this matter.
Working with a Broker
A mortgage broker has years of experience and a lot of connections within the home loan world. They know how to help you fix any financial problems you may have that would prevent you from getting approved for a mortgage. They also work with many different types of lenders so you will only have to fill out one application and they will take care of the rest. Most are capable of working with FHA or the Veteran's Administration. They can be good at working with alternate financing as well, such as finding a second mortgage or how to come up with the down payment without jeopardizing the loan approval. Finally, because they do a lot of business with many institutions, they can often get some of the fees waived to save you money.
Going it Alone
However, there are some very good reasons for finding your own mortgage. This can be especially true if you already own a home or have a mortgage in good standing. The institution who you have worked with before is often the best place to start when looking to buy a new home. They know you and your financial history and will give you the best deal possible to keep your business.
If this is your first real estate purchase, you may want to do a bit of mortgage hunting to see what you can get and then talk with a broker. There are some lending institutions that will not work with a broker just as there are some that will only work with one. Although it can be daunting to fill out a bunch of different applications, it is the best way to make sure you are getting the best deal possible.